Shop Insurance Package cover
Shops Insurance– Insurance for a shop, is available on a package basis, that is to say, the policy cover. is broken down in to various sections, all offering protection against a different parts of the business. Britain, is a nation of shopkeepers, selling a wide variety of goods and services Although, the range is incredibly diverse, all retails outlets are exposed to a similar range of perils and insurers have developed their policy wordings to offer cover against a broad range of contingencies. There are a number of sections which will apply to all shop insurance polices regardless of what exactly the shop retails. However, most policies will have to be tailored made to a certain degree to account for the different types of goods or services that are sold. The following sections are fairly typical (below). Assetsure can provide a range of shop insurance covers for the following types of shops:-
Whilst a large number of shops do own the premises, from which they trade, a substantial proportion of shopkeepers, rent their retail premises from a landlord. If you are a landlord and simply want insurance for a building that is used as shop, then a commercial building insurance can be arranged. The policy will cover all the usual perils, you would expect to find under a building insurance policy and should also include an amount for your loss of rent. In most cases twelve, months loss of rent is included but this can sometimes be extended for periods of up to thirty six months. If there is a flat above the shop, remember to include the rent earned from the shop in any figures that you provide. it is usual to provide the occupation of the business that is renting the shop as often, this will be one of the determining factors in the premium.
Certain shops attract higher insurance premiums than others on the basis, the more ‘high risk’ the business, the likelier, there is going to be a loss. ( for example, a jeweller, is more likely to have a break-in than say a florist. If you rent your shop, you can supply the landlord with building insurance quotes for your shop, but in all probability they will want to use their own source. If you own the building that your shop is located in, then of course, you will be free to arrange your own building insurance. again, your actual trade will be taken in to consideration, when the premium is calculated, as will the risk address and postcode.
Other information, required will be the construction of the property and the security measures in force. In some locations, particularly in large towns and cities, the insurers may want you to have shutters or blinds fitted to the premises. If you have a mortgage on the property, your lender will want to see their name on then policy wording as well as sight of the policy document. Frequently, shops have residential accommodation above them, this only really becomes an issue, if the flat communicates with the shop premises below. If the entrance is separate, then there shouldn’t be too much of a problem. However, the usage of any space above the shop will have to be declared to the insurance company. In some cases residential flats above shops are sold on long leases, if this is the case and assuming you are the freeholder of the business, you can still arrange a policy to cover the whole of the building and then charge the leaseholders of the flat a proportion of the premium.
It is difficult to calculate a correct rebuilding sum insured for a shop, unless you have an up to date survey, will will need to seek the professional advise of a surveyor.
Shop contents insurance is one of the main sections of the policy. This section can be further divided in to : General Contents ( such as your fixtures & fittings, shelves, tables, chairs. desks etc). High Risk contents (this usually includes electronic equipment such as computers, tills and any EPOS ordering systems you may have) Stock, and Goods that you have in Trust. and are responsible for ( such as bicycles that have left for repair).
When it comes to insuring your shops stock, your insurers may want a breakdown of the stick your are carrying depending on the trade of your business. If you are a florist, a very low risk trade, then all of your stock will be similar. However, if you are a news agent with perhaps, a small office lice & grocery business attached, then you could be carrying a wide variety of stock. As well as say, newspapers and magazines, you will undoubtedly have some high risk stock such as cigarettes and alcohol. The general rule of thumb is, the more likely it is a stock will be stolen, then the higher the insurance premium.
With certain trade’s, particularly the ones that carry high value stock ( such as electronic equipment or clothing, you may find that the threshold for upgrading security at your premises is quite low. You may have to fit shutters or blinds to your property and in some cases and alarm may even be required. in all cases, the insurers will require to know, full details of the security in place at the premise, nowadays, at almost all location, where ever they are situated, a basic minimum standard of security will be required.
Some shops will also need extra contents cover if there stock is perishable ( for example frozen food) Many establishments with shop fronts ( such as take ways) are often bettered insured under a more specific policy such as a restaurant or takeaway policy. Although the list of perils covered is similar, there will usually be extra warranties and conditions relating to the service and up keep of catering equipment. To obtain your quotation, you will need to declare, replacement costs for the above items. It is usual for a shop keep to also have to insure ‘the front of the shop’, including glass and signs. Many landlords, will not cover this under there building insurance and it is essential that you obtain an accurate idea of the replacement cost, glass shop fronts do break on a regular basis, particularly in city and town centre locations. When asking for your quotation, remember to declare, everything that your shop sells, as this can make a difference to the premium.
Loss of Income
Whilst the above sections will cover you for damage to you building or contents, the loss of income or business interruption section of a policy is vitally important. Many shop keepers do not stop to think of what would happen to their livelihood, if there was a serious occurrence such as a fire or flood at the premises. Many do not realise that you can insure against such contingencies and this section of the policy could, if you pardon the expression, keep your business afloat in the event of an enforced period of being unable to trade.
Following a loss, some costs remain fixed and will continue, even if you are unable to trade, many business are unable to sustain a period of no income and thus it is essential that adequate protection is secured, via this section of the policy. The actual sum insured your will receive can be calculated as two separate amounts and depending on the type of shop you run, either or both may apply. They are as follows :
1- Gross Income, this is defined as, the money paid or payable to you for the goods you sell (less the cost of buying your stock. You must include monies received for services you provide as well. Slight alteration can be made by difference in values of the stock you hold at the end of the year, when compared to that held at the beginning,
2- Increased Cost of Working, the additional expenditure necessarily and reasonably incurred, to carry on running your business, following a claim and during the time your insurance company are carrying out reinstatement.
Some modern policy wordings, will not ask you for your gross profit figurers, they will simply pick a sum insured for you, This can be ideal for a small business as the sum insured is usually, far higher than is needed. However, you need to pay close attention to the sum insured as you will not be properly protected if the sum insured is not adequate.